The recent record US$1.8b fine for insider dealing which SAC Capital was forced to pay after investigations by the Securities and Exchange Commission (SEC) is being seen as a sign of things to come. John Carney, ex-SEC fraud head who is now co-head of corporate investigations at law firm BakerHostetler, says there is increasing 'scrutiny' of private equity firms. Sidley Austin's Timothy Spangler says: 'Private equity investigations are at the stage where hedge funds were five years ago.' He said that 'proven investigatory techniques' such as wiretapping and use of informants allied with 'the young generation of prosecutors looking to make a name for themselves look like a volatile combination'. Source: Financial Times